Japanese media: ZTE is too badly sanctioned to call Intel Qualcomm.

category:Internet
 Japanese media: ZTE is too badly sanctioned to call Intel Qualcomm.


NetEase news on April 25th, according to Japanese media, the United States government announced last week to ban ZTEs purchase of American technology, which not only caused serious difficulties to ZTE, but also caused great repercussions in the global communications industry supply chain. We are forbidden to call or communicate with American business partners such as Qualcomm, Intel and Bo Tong, one ZTE insider said with a helpless voice. Chinese media reported that although ZTEs spare parts inventory could support for a month, production has slowed to a near standstill. The ban came from a settlement agreement between ZTE and the U. S. Department of Commerce in March 2017. The US government believed that ZTE transported communications equipment to Iran and North Korea in 2010-2016 years and hides transactions through shell companies and violated the U. S. sanctions agreement. ZTE acknowledged the existence of these problems and agreed to pay a fine of $1 billion 190 million in exchange for the US moratorium on export restrictions. But during the extension of the ban, ZTE continued to issue false statements, prompting the commerce department to implement the 7 year ban. Last year, ZTE shipped about 43 million mobile phones, ranking ninth in the global smartphone market. About 70% of ZTEs mobile phones are used for export, about half of which are exported to the United States. It is reported that ZTE has occupied about 12% of the US market and is the fourth largest mobile phone seller in the United States. Because ZTE relies on Key Technologies of US partners, the ban has a devastating effect on it. American companies supply about 30% of ZTEs mobile phones, most of which are purchased from us chip companies such as Intel and Qualcomm. In addition, the software also relies on the US Android system, but the 7 year ban may cut off the use of the system. The ban may also hinder the use of 5G technology by ZTE. At the end of February this year, the company announced cooperation with Intel and Qualcomm in the field of 5G. The tension in Sino US trade relations will also affect HUAWEI, and the Federal Communications Commission said in April 17th that it plans to ban the UniversalServiceFund (General Service Fund) to purchase equipment that has security risks. The fund is used to subsidize the provision of telecommunications services to underdeveloped areas. The move seems to be aimed at HUAWEI and ZTE, because the US government is worried that the Chinese government may use their devices to spy on the United States. The two companies are considered to have a particularly close relationship with the Chinese government. As early as in 2012, the US Congressmen put forward a security warning against HUAWEI and ZTE, asking the US government to prohibit the us from doing business with them. The ban on ZTE may expand beyond China. ZTE and HUAWEI are both the main buyers of Qualcomm and Intel chips, and a sustained trade war may also hurt their own businesses. (Mu Xiulin) source: NetEase science and technology report editor: Wang Fengzhi _NT2541 The tension in Sino US trade relations will also affect HUAWEI, and the Federal Communications Commission said in April 17th that it plans to ban the UniversalServiceFund (General Service Fund) to purchase equipment that has security risks. The fund is used to subsidize the provision of telecommunications services to underdeveloped areas. The move seems to be aimed at HUAWEI and ZTE, because the US government is worried that the Chinese government may use their devices to spy on the United States. The two companies are considered to have a particularly close relationship with the Chinese government. As early as in 2012, the US Congressmen put forward a security warning against HUAWEI and ZTE, asking the US government to prohibit the us from doing business with them. The ban on ZTE may expand beyond China. ZTE and HUAWEI are both the main buyers of Qualcomm and Intel chips, and a sustained trade war may also hurt their own businesses. (Mu Xiulin)